If you’re considering exposing fraud against the government, understanding the journey ahead is vital. In a recent episode of the Fraud in America podcast, Keller Grover attorney Kate Scanlan, known for her extensive experience with the False Claims Act (FCA), and host Jeb White shed light on what whistleblowers need to know before they make the decision to step forward. 

Here are some of the key takeaways Kathleen and Jeb offer to help potential whistleblowers understand the complexities of the process.

First Steps: Trust Your Gut and Seek Legal Counsel

The journey of a whistleblower often begins with a gut feeling that something is wrong. During the podcast, Kate emphasizes the importance of trusting that instinct and quickly seeking the counsel of a seasoned attorney. 

It’s important to do your homework and find a lawyer with a proven track record in handling cases similar to yours. A quick online search can reveal important details about a lawyer’s experience and the types of cases they have handled. Kate advises that potential whistleblowers be prepared with a clear and concise summary of your allegations — a brief “elevator pitch” — which can help streamline discussions with potential legal representatives and enable them to quickly evaluate your case.

Understanding Privilege, Evidence, and Case Selection

One of the most critical points made during the podcast is the significance of the attorney-client privilege in whistleblower cases. This legal protection ensures that the information you share with your attorney remains confidential, allowing you to share your concerns and evidence in confidence, without fear of retaliation or exposure. This privilege builds a foundation of trust between you and your attorney, which is essential for the success of your case.

The podcast also dives into the importance of having substantial evidence to back your claims. FCA cases can be particularly challenging, and the government’s limited resources mean that only the most compelling cases are likely to proceed. As such, being prepared with clear and convincing evidence is crucial, especially in cases where the government might choose not to intervene.

The Impact of Social Media and Public Disclosure

Social media can be both a tool and a trap for whistleblowers. During her conversation with Jeb, Kate recommends that whistleblowers set strict guidelines around social media use to avoid inadvertently creating issues that could jeopardize your case or raise red flags that could further complicate your legal battle. 

Other potential hurdles discussed that are essential for whistleblowers to understand include: 

• The Public Disclosure Bar, a legal doctrine that can block cases based on information already in the public domain. 
• The Health Insurance Portability and Accountability Act (HIPAA) and its exceptions, which allow whistleblowers to legally share patient records with the government under certain circumstances. 

The nuances and implications of HIPAA are particularly relevant for those in the healthcare sector considering taking action against fraudulent practices involving patient data.

Life After Blowing the Whistle

One of the most compelling parts of the podcast is the discussion on life after whistleblowing and the various paths whistleblowers may take once their case is over. 

Whether returning to your previous role, pursuing new opportunities, or reflecting on the experience, the decision to blow the whistle can have long-term consequences both personally and professionally. Understanding the potential outcomes can help you make informed decisions about your future.

The decision to become a whistleblower carries significant weight and the courage required to stand up against fraud is significant. By empowering yourself with an understanding of every step of the process and potential outcomes, you can make informed decisions about your future with confidence and integrity.  

How We Can Help

If you’re considering blowing the whistle, remember: preparation is key, and the right legal guidance can make all the difference. For additional insights and a comprehensive guide on navigating the FCA and life after whistleblowing, listen to the full episode of Kate’s appearance on Fraud in America, available here.

Keller Grover has deep experience advising potential whistleblowers and can help you determine the best path forward from the very beginning. Our lawyers diligently follow the latest legal developments to help minimize the impact of reporting, protect the rights of whistleblowers and achieve the best possible outcome. Contact us today for a free confidential consultation.

 

As climate change intensifies, the federal government has ramped up its efforts to combat its effects, including allocating billions of dollars to various environmental programs. Recently, the Environmental Protection Agency (EPA) announced a $4.3 billion investment into community-driven climate projects across 30 states, ranging from forest management initiatives to household energy efficiency improvements. This funding, part of the broader Climate Pollution Reduction Grants Program, is intended to help states, cities, and local communities meet their sustainability goals.

The Potential for Fraud

The nature of climate-related funding, particularly in emergency contexts, creates opportunities for fraud. Whether it’s falsifying claims for projects that never materialize, inflating costs, or diverting funds to unrelated purposes, the potential for abuse is significant. 

As more funds are disbursed, the likelihood of fraud cases arising increases. This situation echoes previous concerns we’ve highlighted about fraud in government programs aimed to protect the environment, such as those detailed in our May 2023 article on whistleblowers combating fraud in the “Blue Economy.”

Whistleblowers: The First Line of Defense

The federal government relies heavily on whistleblowers to expose such fraud. The False Claims Act (FCA) empowers individuals to report misuse of government funds, often leading to significant recoveries for the U.S. Treasury and substantial rewards for the whistleblowers themselves. With the new influx of climate-related funding from the Inflation Reduction Act (IRA), there is a heightened potential for fraud, particularly in areas heavily impacted by climate change, such as those facing severe droughts and wildfires.

Our previous article highlighted how whistleblowers could help protect the environment by reporting fraud in programs like the International Convention for the Prevention of Pollution from Ships (MARPOL) and the SEC’s whistleblower program related to climate risk disclosures. These examples illustrate the powerful impact whistleblowers can have on both protecting the environment and ensuring the proper use of federal funds.

The lessons learned from combating fraud in marine pollution and climate-related financial disclosures are now more relevant than ever as new funds are disbursed under the IRA. The ongoing focus on environmental funding fraud by federal authorities underscores the need for continued monitoring and reporting, and whistleblowers will play an instrumental role in ensuring that these resources are not diverted from their intended purpose.

Moving Forward: Protecting Environmental Funding

At Keller Grover, we are committed to helping whistleblowers protect public funds and ensure that government resources are used to address the critical challenges of our time, including climate change. If you have information about potential fraud in environmental funding, we encourage you to reach out for a confidential consultation. Our team of experienced attorneys can guide you through the process, help protect your rights, and work towards the best possible outcome for your case.

Contact us today for a free, confidential consultation. 

For more than a decade, the Senate Whistleblower Protection Caucus has led an effort to designate July 30 as “National Whistleblower Appreciation Day,” celebrating whistleblowers’ contributions and risking their livelihoods and reputations to combat legal and regulatory violations, waste, fraud and abuse in the United States.

The July 30 designation is no accident. The American tradition of supporting whistleblowers dates back to July 30, 1778. Just two years after the United States was founded, and before it had even won its independence from Great Britain, the Second Continental Congress on that date passed a unanimous resolution calling upon all public servants — and all Americans — to report public officials’ “misconduct, frauds or misdemeanors.”

A resolution to recognize July 30 in honor of whistleblowers, introduced by U.S. Senators Chuck Grassley (R-Iowa) and Ron Wyden (D-Ore.), co-founders and co-chairs of the caucus, has been passed unanimously by the Senate every year since 2013. It encourages each executive agency to recognize National Whistleblower Appreciation Day by:

• Informing employees, contractors working on behalf of the taxpayers of the United States, and members of the public about the legal right of a United States citizen to ‘‘blow the whistle’’ to the appropriate authority by honest and good faith reporting of misconduct, fraud, misdemeanors, or other crimes.
• Acknowledging the contributions of whistleblowers to combating waste, fraud, abuse, and violations of laws and regulations of the United States. 

In addition, Grassley has asked every president since Ronald Reagan to honor whistleblowers by hosting a Rose Garden ceremony on Whistleblower Appreciation Day. That celebration has yet to occur, but whistleblowers are deserving of such an honor for many reasons.

“The cornerstone of the United States’ government is accountability to the people it serves. Whistleblowers put their jobs and reputations on the line to uphold that bedrock principle. Our laws should empower their oversight and ensure they can come forward without fear of retribution,” Grassley said last year. “Protecting whistleblowers is good government, plain and simple, and that’s something we can all get behind.” 

“Whistleblowers are brave individuals who sound the alarm on fraud, waste, and abuse of public resources,” Wyden said last year. “It’s time for Congress to step up and support whistleblowers by strengthening laws that allow them to raise issues without fear of retaliation. Whistleblowers are the fail-safe for our government and I’ll fight tooth and nail to shore up protections that bolster our democratic institutions.”

At Keller Grover, we extend our support for National Whistleblower Appreciation Day and efforts to strengthen whistleblower law because whistleblowers make a sacrifice to speak up about wasteful spending and wrongdoing. Whistleblowers are often the only people able or willing to share information that can stop or expose a fraud, which is a view held not only by advocates like us but the federal government as well. For example: more than $2.3 billion of the $2.68 billion in False Claims Act recoveries last fiscal year came from whistleblower-initiated cases, nearly 86 percent.

Keller Grover provides confidential, free consultations to advise potential whistleblowers. If you suspect wrongdoing and have questions about your next steps, contact us today.

 

Billions of dollars in pandemic-related fraud remains unresolved, and the government is relying on whistleblowers to enforce consequences for misuse of public funds. 

During the past fiscal year, the U.S. Department of Justice resolved about 270 False Claims Act matters tied to improper Paycheck Protection Program loans. The related settlements and judgments amounted to $48.3 million — the whistleblowers who stepped forward to expose these frauds received awards as provided for in the False Claims Act.

Resolution of more of these cases could go on for years. President Biden signed a law extending the statute of limitations on pandemic relief program fraud to 10 years. That includes civil and criminal fraud enforcement related to the PPP and the Small Business Administration’s COVID-19 Economic Injury Disaster Loan programs.

Recent judgments and settlements cross industries:

• Victory Automotive Group Inc. agreed to pay more than $9 million over allegations that it misrepresented its business to get a PPP loan, which was later forgiven.
• Coyne Public Relations LLC paid $2.24 million to resolve allegations that it received a PPP loan for which it was not eligible.
• John Seasholtz and four of his agricultural companies agreed to pay more than $600,000 over charges of claiming more employees than they had. The companies also will repay certain loan funds, which the Small Business Administration had guaranteed for about $1.8 million.
• The government similarly has pursued companies that helped businesses secure inflated payments.

The DOJ also has been pursuing other pandemic-related fraud, such as health care providers profiting from the crisis by billing the government for unnecessary tests and services.

Pandemic era fraud matters for all citizens. The public money was intended to provide relief amidst a crisis that required rapid distribution of funds. 

Whistleblowers — normal people who see wrong and have the courage to report it — play a key role in the government’s ability to recover this money. And the government rewards them; the False Claims Act allows them to be compensated 15 percent to 30 percent of the recoveries from successful cases.

In fiscal 2023, whistleblowers filed 712 qui tam suits, or lawsuits alleging false claims on behalf of the government.

Those who knowingly and falsely claim money from the United States, or knowingly don’t pay money owed to the government, face triple damages and penalties under the False Claims Act.

At Keller Grover, we feel strongly about helping whistleblowers protect the country against fraud and make sure public money gets to its intended beneficiaries. Through our confidential, free consultations, we can advise potential whistleblowers about the best path forward from the very beginning, helping minimize the impact of reporting, protect rights and achieve the best possible outcome for the situation. Our deep experience litigating both fraud and employment law makes us uniquely skilled to represent whistleblowers.

About a third of Americans who make it to their 65th birthdays will need nursing home care, according to the U.S. Department of Health and Human Services. In 2021, Medicare spent $92.6 billion on skilled nursing facility care and home health services.

Unfortunately, fraud is particularly problematic in nursing homes, where vulnerable patients live away from loved ones. When care is motivated by financial gain, it also puts patients’ lives at risk. 

Both the state and federal governments rely on whistleblowers to report these instances of abuse and fraud. New cases describing new schemes are reported weekly.

Just this month, multiple settlements were announced related to skilled care across the country.

• On June 6, five people were arrested in Los Angeles on criminal charges tied to alleged operation of sham hospice companies that defrauded Medicare of more than $15 million. 
• A long-term care management company from Massachusetts reached a $4 million settlement over allegations that it deliberately neglected to properly staff its nursing homes, causing harm and neglect to residents. 
• A Georgia hospice facility will pay $1.4 million to resolve allegations of a kickback scheme to get more patient referrals.
• A Connecticut company and its CEO will pay $4.6 million to resolve allegations of fraudulently and improperly submitting claims tied to telehealth services for nursing home residents.

And in May, a California-based nursing home chain reportedly settled a Medicare fraud lawsuit for $7 million.

Whistleblower laws such as the False Claims Act empower even a single principled healthcare worker to dismantle wide-ranging frauds. Generally, healthcare fraud involves deception to get paid by an insurer — in this case, often Medicare or Medicaid — for medical goods or services. It also can involve knowingly doing prohibited things, such as paying for patient referrals, while participating in a government healthcare program.

The U.S. Department of Health and Human Services Office of the Inspector General earlier this year outlined a series of key goals in its nursing home oversight:

• To protect residents from fraud, abuse and neglect, and to promote high-quality care.
• To promote emergency preparedness and response efforts.
• To strengthen frontline oversight.
• To support federal monitoring of nursing homes to mitigate risks to residents. 

Help address these problems and protect older Americans and their loved ones. If you suspect fraud or other abuses and want advice, Keller Grover’s experienced attorneys offer free and confidential consultations.